Russia Steel Exports Analysis, January 2019

Russia – the world’s third-largest steel exporter recorded 41 MnT of steel exports in CY18, an 11 percent increase from 37 MnT in CY17.

In the first month of 2019, the total steel exports reported at around 3.04 MnT, decline marginally by 18% on monthly basis as against 3.71 MnT in December 2018. In line in Jan’19, Russia’s major exports of Semi Finished, Finish long & Flat steel seen to Taiwan (14.94%), Kazakhstan (19.88%) & Turkey (28.16%), respectively.

According to World Steel Association, Russia’s crude steel production recorded at 5.79 MnT during Jan’19 as against 5.87 MnT in Dec’18.

Russian iron ore exports for the month of Jan’19 recorded at 1.77 MnT, down 35% as against 2.71 MnT in Dec’18. On yearly basis, exports have dropped 15% against 2.08 MnT in Jan’18. Finland stood largest importer of iron ore for the month at 0.41 MnT, up against 0.12 MnT in Dec’18. Russian exports to China down 38% in Jan’19 to 0.31 MnT as against 0.5 MnT a month ago.

Russian coal exports in Jan’19 have fell to its lowest mark since Jul’17, due in part to rail restrictions to north-western ports. Exports decreased 40% M-o-M to 11.4 MnT in Jan’19, which also 2% lower on the year from 11.68 MnT in Jan’18.

Russia exported 233,438 MT ferrous scrap in Jan’19, down 43% M-o-M as against 410,111 MT in Dec’18 amid seasonal concerns and significantly declined imports from Turkey (-75% M-o-M) and South Korea (-32% M-o-M).

Notably, scrap exports hit the last 21 months low in Jan’19 as the previous low was recorded at 224,252 MT in Mar’17. On yearly premises, exports fell 30% Y-o-Y in Jan’19 as against 334,775 MT ferrous scrap in Jan’18.

The clarity on scrap export ban hasn’t received yet as Russian scrap metal association Ruslom has proposed a temporary six-month scrap export restriction during the seasonally low activity period for Russia’s domestic and export market from 1 Oct’19 to 1 Apr’20 and to limit on the ban restriction to a maximum of 520,000 MT (only around 10% of all ferrous scrap exported in 2017).

Belarus stepped up as the largest scrap importer (84,576 MT, up 2087%) occupying 36% share in total Russian scrap exports followed by Turkey (59,503 MT, down 75%), South Korea (53,245 MT, down 32%), Poland (8,683 MT) and Spain (5,535 MT, down 66%) on monthly premises.

Russian Flat steel exports drop by 14% in Jan’19 & stood at 0.84 MnT in comparison with 0.98 MnT in Dec’18. Strong demand in domestic market leads to fall in HRC export volumes from Russia. Growth in domestic demand is mainly due to increased sales of high valued added products like hot dip galvanising line running to full capacity, higher sales of cold rolled products along with improved sales in downstream products in domestic market.

Meanwhile it is expected that share of domestic sales in first quarter of CY19 will be higher. And on yearly premise flat steel exports from Russia plunged by 24% in Jan’19 against 1.10 MnT in Jan’18.

Turkey being the major Flat steel importer from Russia accounted for 0.24 MnT in Jan’19 which was higher by 14% against 0.21 MnT in Dec’18. Other major importing nations include Uzbekistan at 0.06 MnT, Belarus at 0.06 MnT, Kazakhstan at 0.06 MnT, Poland at 0.06 MnT and Latvia at 0.05 MnT in Jan’19.

Billet exports from the top exporter – Russia, registered a downfall of about 17.80% M-o-M in Jan’19. As per custom data maintained by SteelMint stats, the nation has exported around 1.31 MnT billet in Jan’19 against 1.59 MnT in Dec’18.

Taiwan has imported approximately 22.63% (0.30 MnT) billet from Russia and maintains the top number in January 2019, followed by Mexico 18.92% (0.25 MnT) & Belgium 13.04% (0.17 MnT). Taiwan was imported around 20.02% (3.20 MnT) of the total billet exported by Russia in the CY18 (Jan-Dec).

Russia Finish Long exports recorded at 0.22 MnT in Jan’19 decrease by 19% as compared to Jan’18 and stood at about 0.27 MnT. Based on monthly comparison, country’s finish long exports also fall by almost 33% as against Dec’18 and stood at 0.33 MnT.

Russia Ferro Alloy exports rise. On monthly analysis it was learned from the custom that total Ferro Alloy export incline by 27.1% M-o-M & stood at 72,839 MT in Jan’19. While on yearly basis Ferro Alloys exports rise by 39.4% as against 52,248 MT in Jan’18.

Graphite Electrode exports from Russia fall by 30.2% in Jan’19 & stood at 2,220 MT. And export to United States reported at 620 MT & 316 MT to Brazil.

Quantity in MT
Source Customs